Friday, March 9, 2012

Economics 101 - Ignored by Big Government

Economics 101
Today's lesson - The Law Big Government Ignores.
First we state the truth: Consumption is necessary to sustain life, and exists at the core of every economic system.  We are all born consumers, and we continue to consume until the day we die ... and when you think about it, even in death people continue to consume.  Coffins, head stones, flowers, and/or energy to cremate the body all require some natural resource to be exploited. So, even in death we will, in some limited way, continue to be consumers.  Consumption is also the engine for economies in every form; Dictatorships, socialism, capitalism, or any hybrid thereof depend upon people consuming things. Without people eating food, clothing themselves, building shelters, and attempting to stay comfortable, no economy would exist. Indeed, consumption is one of those truths that must be recognized as an important one.
Now that we understand the truth we should state axioms that are relevant to the truth.
The means of consumption is accommodated in one of three ways:
1) It is gifted.  Every person on the planet  began life under this axiom. Most live in this manner for several years. It is not until we acquire the necessary skills, talents or abilities that the expectation of earning our means of consumption is imposed.
2) It is stolen. Our prisons are full of people who thought that stealing was an expeditious means to their consumption. Now they are among those who are gifted the means of their consumption.
3) It is earned. This is the way civilizations not only survive but thrive; people earning their means of  consumption by offering their talents, skills and abilities in exchange for something either directly or indirectly  tangible. Before the days of sophisticated commerce, people bartered their skills, talents and abilities in exchange for that which they wished to consume. In today's market- place, the barter system has been mostly replaced with a monetary system.  People work, they get paid in a recognized currency, and then the currency is exchanged for food, clothing, shelter, etc.  We raise our children ... or at least some of us tried to do so ... with this axiom in mind. Work hard for it is the means to survival and success in life.
Now we state the precept: For an economy to survive, those being gifted and those stealing must not overreach the abilities or efforts of those who are earning the means for consumption.  For obvious reasons, some among us must come under the care of someone or some organization that can take care of them; children, the elderly,  the handicapped, and those with debilitating conditions. The family unit has long been looked upon as the provider for children. Before WW2, families were expected to take care of their aging relatives, communities and local organizations, for the most part, took care of the sick the orphaned and handicapped.  It was only after WW2 did Americans start looking earnestly to government programs to provide for those that couldn't provide for themselves. 
Now the principle: The most efficient and judicious means of sustaining a culture/socioeconomic system is for a majority of individuals, for a majority of their living years, to earn their means of consumption. The Bible says ... "If a man doesn't work, he should not eat." This is not some punitive law established by religion, it is quite simply a law of nature. One man may find a means of supporting a family of six, eight, perhaps in some  rare cases, ten other family members, with the ultimate goal of not having to do it for his entire life. Burden that man with the requirement of supporting another six, eight, or ten, for the length of his lifetime, and his life may be cut short from exhaustion.  In August 14, 1935, when Social Security was created, there were 40 workers for every retiree. Today there are less than 3 workers per retiree, and in a few short years the ratio will be 2:1.  While the entitlement age began with FDR and Social Security, the Johnson Administration expanded it, and today, Social Security, Medicare, Health and Welfare programs, consume 50% of our federal budget. What this means is that more and more people are growing dependent upon the government for their means of consumption. It doesn't take a Harvard-trained economist to realize that the system is unsustainable.
And finally the application: Embrace the free market system, unencumbered by government interference. The first step might be to require that able bodied people take care of themselves, for that is adherence to the law of nature.

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